Anticipating Risk Measures Insurance

Anticipating Risk Measures Insurance

Risk is anything that can happen to people who do not want to happen. Every human being has the risk of whatever he's doing. In addition, human life itself also contains many risks.

There are some risks that can be avoided, and there are some risks that can not be avoided. Examples of these risks can be avoided is the risk of accidents or theft risks. While examples of risks that can not be avoided is the risk of death.

The effects of risk often leads to substantial losses. Whether the loss of the psychological side, as well as losses from the financial side. If your home has fire, then you will experience financial losses in the amount equal to the value of your home when the fire occurred. Therefore, it is important for you to anticipate any risks that might happen to you.

Not necessarily INSURANCE

Hearing the word anticipation of risk, your mind may be directly carried over to the term "insurance". In the science of financial planning, the purpose of insurance is to protect (protect) you from financial losses that may arise from the occurrence of a risk. For example, you probably can not avoid the risk of injury to yourself, but you can protect yourself from financial loss which may arise from the occurrence of the accident.

Are all risks that could happen to you need to be insured? The answer is not. For example, you often wear shoes that have lost the possibility to be stolen. Yes but what you will insure your shoes? Most likely not. Why? This is because if your shoes are missing, the amount of your loss may not amount to much.

Another case when your house caught fire, then the financial losses that may arise could be huge. That's why, you need to take fire insurance for your home.

Options to anticipate these risks, referred to Risk Management. For convenience, I shall call this in anticipation of risk. In this article, I will show you how you can anticipate the risks that could happen to you.

VARIOUS OPTIONS

Financial losses can occur when you experience death, accident, illness, or if your property is lost or damaged. Sometimes, the financial losses can also occur when you run into lawsuits from third parties, such as when you hit someone else to hurt and you are required to replace all the medical bills.

Now, what choices are available for you to anticipate the risks? Assuming you are required by your boss (or anyone) to bring a package by means of vehicles, from city A to city B. Nevertheless, a busy state road makes you risk having an accident risk. Therefore, there are a number of options for you to anticipate these risks:

1. Avoiding Rrisiko. You can avoid the risk of accident. The trick, do not drive. But consequently, your package will not be sent.

2. Facing Risk. You can drive and carry the package as normal without the need to be careful, and you accept the consequences if the risk of an accident does occur

3. . Reduce Risk. You drive and bring the package, but be careful in driving. Thus, the risk of accidents can be reduced.

4. Dividing risk. Packages that you should take it divided in two with your friends. He carried several packages in different vehicles, so do you.

5. Risk transfer. You ask your friend who brought the whole package.

Well, now we try to practice the theory of risk aversion. We suppose you want to buy a house, but like most other houses, the house would you buy a fire risk. To anticipate, then the choices available to you are:

1. Renting it, do not buy the (risk-averse).

2. Buying a home, and face the risks are, where you hope that the risk of such fires do not occur (at risk).

3. Provide a fire extinguisher in your home (reducing risk).

4. Give up some losses on the other hand, if your house caught fire (the risk).

5. Submit all of the losses on the other hand, if your house caught fire (risk transfer).

The fourth and fifth option above that is what we are familiar with insurance. That is, the insurance can be a party you serahi loss if you run a risk.

TAKING DECISIONS

Once you know what choices are available for you to anticipate the risks, then your next step is to write the risks of what might happen to you, and what options would you use to anticipate them. Below are the steps:

1. Know your risk

2. Evaluation of the consequences if the risk occurs.

3. Take decisions about what options would you use to anticipate these risks

For example, risks that may happen to you is death, accident, sickness, accident of the vehicle, accident on the car, layoffs, and can not work. Therefore, the steps are:

1. Know your risk: death.

2. Evaluation result: The cost of family life that you leave behind will not be repaid.

3. Take the decision:

1. Risk Avoidance: In this case it is impossible to avoid the risk of death.

2. Facing Risk: It could be, with the consequence that the cost of family life will not be paid

3. Reducing the Risk: The risk of death can not be reduced

4. For risk: Submit your family life some of the financing on the other hand when you die

5. Risk transfer: Submit your family life all loans on the other hand when you die.

It's up to you, which decision would be taken.

Once you make a decision for a risk, then repeat these steps for subsequent risks (such as accidents). And so on. So now you already have a program for your family's risk aversion.